ARM 401 EXAM STUDY GUIDE
HAZOP Process Steps - Answers -1. Divide project/system into small components
2. Review components to identify risk
3. Identify cause and potential outcomes of risks
4. Develop solutions to risks
5. Ensure solutions work and reevaluate
SWOT analysis (strengths, weaknesses, opportunities, threats) - Answers -A SWOT
analysis is useful when there is a specific goal, such as determining whether engaging
in a new product or project is feasible. It's less useful for analyzing current processes
and procedures to identify risks unless there is a specific objective, such as whether a
procedure conforms to new regulations or customer specifications. A goal is necessary
to keep the SWOT analysis from becoming too general or failing to provide actionable
information. Generally "go" or "no go"
Risk Threshold - Answers -The range or amount of risk that is acceptable
Radio Frequency Identification (RFID) - Answers -A technology that uses radio
frequency to identify objects
Artificial Intelligence - Answers -Computer processing or output that simulates human
reasoning or knowledge
Computer Vision - Answers -A technology that simulates human vision
Risk registers should always do these 4 things: - Answers -Identifies the organization's
risks appropriately
Prioritizes risks according to their potential effects on the organization
Allows for collaboration and instant updating by risk managers and stakeholders
Tracks improvement actions to take, when they're taken, and when a follow-up or
review will occur
Risk Register - Answers -A tool developed at the risk owner level that links specific
activities, processes, projects, or plans to a list of identified risks and results of risk
analysis and evaluation and that is ultimately consolidated at the enterprise level
Risk Map vs Risk Register - Answers -An organization would use a risk register to
identify, describe, and prioritize the risks of either a specific circumstance (such as a
process, project, or risk event) or the organization as a whole. It's essentially a ledger to
document risks and all information related to them. A risk map, on the other hand, is
developed after a risk register and incorporates information from the register. A risk map
provides a visual representation of a risk register's data to show which risks are the
highest priority for risk managers and owners.
,Relationship between inherent, residual, and optimuml risk - Answers -if the difference
between the inherent risk and what the residual risk will be after a treatment is applied is
small, either the risk doesn't need to be treated or the treatment itself isn't effective
enough. The difference between the residual risk and optimum risk represents how
much further a risk can be reduced
Risk Map - Answers -A template depicting the likelihood and potential
impact/consequences of risks
Inherent Risk - Answers -The level of risk that would be faced if it were to remain
untreated or no action were to be taken to alter the level of risk
Residual Risk - Answers -The level of risk remaining after actions are taken to alter the
level of risk
Optimum Risk - Answers -The level of risk that is within an organization's risk appetite
Coordination - Answers -the act of improving efficiency and reducing redundancy by
some combination of arranging, assigning, organizing, or scheduling activities
Collaboration vs. Cooperation - Answers -Collaboration is the act of working together to
achieve a shared objective. Cooperation is the act of working together to achieve
individual objectives instead of a shared objective
Predictive techniques, such as decision tree analysis and event tree analysis: -
Answers -assign numerical values to various components related to a risk and combine
them to produce a probability estimate
Risk Control - Answers -A conscious act or decision not to act that reduces the
frequency and/or severity of losses or makes losses more predictable
Three categories of accident causes: - Answers -poor management, safety policy, and
personal or environmental factors
Sequence of Events (Domino Theory) - Answers -The sequence of events theory
proposes that these five accident factors can form a chain of events that, like dominos,
lead in succession to the resulting accident and injury:
1. Ancestry and social environment, such as inherited psychological disorders and
dysfunctional social environments
2. Fault of person, such as impulsiveness, violent temper, nervousness, or a refusal to
adapt to safe practices
3. An unsafe act and/or a mechanical or physical hazard, such as improper use of
machines or equipment, or poor maintenance of surroundings, such as slippery floors or
faulty railings
4. The accident itself
5. The resulting injury
, Because each of the earlier links of the domino theory leads directly to the next,
removing any of the four factors that occur before the injury should, in theory, prevent
the resulting injury from occurring. Removal of the third domino, the unsafe act and/or
mechanical or physical hazard, is usually the best way to break the accident sequence
and prevent injury or illness; most applicable to situations within human control; well-
suited to accidents caused by human carelessness
TOR establishes five basic principles of risk control: - Answers -An unsafe act, an
unsafe condition, and an accident are all symptoms of something wrong in the
management system.
Certain circumstances, unless identified and controlled, may produce severe injuries.
Safety should be managed like any other organizational function, with management
setting achievable goals and planning, organizing, leading, and controlling to achieve
them.
Management must specify procedures for accountability if safety efforts are to be
effective.
The function of safety is to locate and define the operational errors that allow accidents
to occur.
Technique of operations review (TOR) - Answers -An approach to accident causation
that views the cause of accidents to be a result of management's shortcomings. TOR
tries to identify particular faults of an organization's management and groups these
faults into categories. It also helps identify accident causes and suggests corrective
actions.
Energy Transfer Theory - Answers -An approach to accident causation that views
accidents as energy that is released and that affects objects, including living things, in
amounts or at rates that the objects cannot tolerate.
Change Analysis (predictive) - Answers -An analysis that projects the effects a given
system change is likely to have on an existing system. As opposed to the other
techniques, which review accidents that occurred in an effort to discover their causes,
change analysis asks a series of what-if questions regarding a possible change in
process that has yet to occur. It then projects the consequences for the changes
Job Safety Analysis - Answers -An analysis that dissects a repetitive task, whether
performed by a person or machine, to determine potential hazards if each action is not
performed. Each job (activity or operation) is broken down into individual sequential
steps. Hazards associated with each step are identified, controls are defined, and
responsibility for implementing each step is assigned (provided that the added benefit of
the safety procedure outweighs its costs). JSA applies best to repetitive human tasks
performed in an environment sufficiently stable to allow most hazards to be foreseen
Strategic Risk - Answers -Uncertainties associated with the organization's long-term
goals and management decisions
HAZOP Process Steps - Answers -1. Divide project/system into small components
2. Review components to identify risk
3. Identify cause and potential outcomes of risks
4. Develop solutions to risks
5. Ensure solutions work and reevaluate
SWOT analysis (strengths, weaknesses, opportunities, threats) - Answers -A SWOT
analysis is useful when there is a specific goal, such as determining whether engaging
in a new product or project is feasible. It's less useful for analyzing current processes
and procedures to identify risks unless there is a specific objective, such as whether a
procedure conforms to new regulations or customer specifications. A goal is necessary
to keep the SWOT analysis from becoming too general or failing to provide actionable
information. Generally "go" or "no go"
Risk Threshold - Answers -The range or amount of risk that is acceptable
Radio Frequency Identification (RFID) - Answers -A technology that uses radio
frequency to identify objects
Artificial Intelligence - Answers -Computer processing or output that simulates human
reasoning or knowledge
Computer Vision - Answers -A technology that simulates human vision
Risk registers should always do these 4 things: - Answers -Identifies the organization's
risks appropriately
Prioritizes risks according to their potential effects on the organization
Allows for collaboration and instant updating by risk managers and stakeholders
Tracks improvement actions to take, when they're taken, and when a follow-up or
review will occur
Risk Register - Answers -A tool developed at the risk owner level that links specific
activities, processes, projects, or plans to a list of identified risks and results of risk
analysis and evaluation and that is ultimately consolidated at the enterprise level
Risk Map vs Risk Register - Answers -An organization would use a risk register to
identify, describe, and prioritize the risks of either a specific circumstance (such as a
process, project, or risk event) or the organization as a whole. It's essentially a ledger to
document risks and all information related to them. A risk map, on the other hand, is
developed after a risk register and incorporates information from the register. A risk map
provides a visual representation of a risk register's data to show which risks are the
highest priority for risk managers and owners.
,Relationship between inherent, residual, and optimuml risk - Answers -if the difference
between the inherent risk and what the residual risk will be after a treatment is applied is
small, either the risk doesn't need to be treated or the treatment itself isn't effective
enough. The difference between the residual risk and optimum risk represents how
much further a risk can be reduced
Risk Map - Answers -A template depicting the likelihood and potential
impact/consequences of risks
Inherent Risk - Answers -The level of risk that would be faced if it were to remain
untreated or no action were to be taken to alter the level of risk
Residual Risk - Answers -The level of risk remaining after actions are taken to alter the
level of risk
Optimum Risk - Answers -The level of risk that is within an organization's risk appetite
Coordination - Answers -the act of improving efficiency and reducing redundancy by
some combination of arranging, assigning, organizing, or scheduling activities
Collaboration vs. Cooperation - Answers -Collaboration is the act of working together to
achieve a shared objective. Cooperation is the act of working together to achieve
individual objectives instead of a shared objective
Predictive techniques, such as decision tree analysis and event tree analysis: -
Answers -assign numerical values to various components related to a risk and combine
them to produce a probability estimate
Risk Control - Answers -A conscious act or decision not to act that reduces the
frequency and/or severity of losses or makes losses more predictable
Three categories of accident causes: - Answers -poor management, safety policy, and
personal or environmental factors
Sequence of Events (Domino Theory) - Answers -The sequence of events theory
proposes that these five accident factors can form a chain of events that, like dominos,
lead in succession to the resulting accident and injury:
1. Ancestry and social environment, such as inherited psychological disorders and
dysfunctional social environments
2. Fault of person, such as impulsiveness, violent temper, nervousness, or a refusal to
adapt to safe practices
3. An unsafe act and/or a mechanical or physical hazard, such as improper use of
machines or equipment, or poor maintenance of surroundings, such as slippery floors or
faulty railings
4. The accident itself
5. The resulting injury
, Because each of the earlier links of the domino theory leads directly to the next,
removing any of the four factors that occur before the injury should, in theory, prevent
the resulting injury from occurring. Removal of the third domino, the unsafe act and/or
mechanical or physical hazard, is usually the best way to break the accident sequence
and prevent injury or illness; most applicable to situations within human control; well-
suited to accidents caused by human carelessness
TOR establishes five basic principles of risk control: - Answers -An unsafe act, an
unsafe condition, and an accident are all symptoms of something wrong in the
management system.
Certain circumstances, unless identified and controlled, may produce severe injuries.
Safety should be managed like any other organizational function, with management
setting achievable goals and planning, organizing, leading, and controlling to achieve
them.
Management must specify procedures for accountability if safety efforts are to be
effective.
The function of safety is to locate and define the operational errors that allow accidents
to occur.
Technique of operations review (TOR) - Answers -An approach to accident causation
that views the cause of accidents to be a result of management's shortcomings. TOR
tries to identify particular faults of an organization's management and groups these
faults into categories. It also helps identify accident causes and suggests corrective
actions.
Energy Transfer Theory - Answers -An approach to accident causation that views
accidents as energy that is released and that affects objects, including living things, in
amounts or at rates that the objects cannot tolerate.
Change Analysis (predictive) - Answers -An analysis that projects the effects a given
system change is likely to have on an existing system. As opposed to the other
techniques, which review accidents that occurred in an effort to discover their causes,
change analysis asks a series of what-if questions regarding a possible change in
process that has yet to occur. It then projects the consequences for the changes
Job Safety Analysis - Answers -An analysis that dissects a repetitive task, whether
performed by a person or machine, to determine potential hazards if each action is not
performed. Each job (activity or operation) is broken down into individual sequential
steps. Hazards associated with each step are identified, controls are defined, and
responsibility for implementing each step is assigned (provided that the added benefit of
the safety procedure outweighs its costs). JSA applies best to repetitive human tasks
performed in an environment sufficiently stable to allow most hazards to be foreseen
Strategic Risk - Answers -Uncertainties associated with the organization's long-term
goals and management decisions
